The Ministry of Trade emphasises that the crude palm oil (CPO) industry is the second-largest driver of the Indonesian economy after coal. Indonesia is the world's largest CPO producer, with a production output of 47 million metric tonnes. This is significantly higher than the production levels of other major producers such as Malaysia (19 million tonnes) and Thailand (3.45 million tonnes). In March 2025, data from Indonesia's Statistics (BPS) revealed that the export value of CPO and its derivatives amounted to USD 2.19 billion. This represented a 3.55% decrease compared to February 2025, when the value was USD 2.27 billion. However, it marked an increase compared to March 2024, when the value stood at USD 1.56 billion, indicating a 40.85% year-on-year (YoY) growth. In 2023, Indonesia's palm oil plantation area reached 15.43 million hectares, surpassing Malaysia's 5.65 million hectares.
The CPO industry in Indonesia plays a pivotal role in driving the economy, particularly through its export activities. According to data from the Ministry of Trade, the export value of palm oil commodities accounted for an average of 61.87% of the total export value of the food industry group from 2019 to 2023. In the last five years, foreign exchange from this product was in the range of USD 22-39 billion. Furthermore, the contribution of CPO to the gross domestic product ranges from 2.5% to 4.5%. In 2022, the industry absorbed 16.2 million workers. Therefore, it is essential that the CPO industry is maintained in order to ensure its sustainability and support life and the economy into the future.
